WASHINGTON (Reuters) – Obama administration will keep tax rates at levels that benefit job-creating businesses and limit taxes on capital gains and dividends, U.S. Treasury Secretary Timothy Geithner said on Wednesday.
Interviewed on CNBC’s “The Kudlow Report”, Geithner said the intent is to extend and keep in place tax cuts that should benefit 95 percent of businesses. “We’re going to make sure that we keep at 20 percent the existing rates on dividends and capital gains,” Geithner said. “We think that’s good policy.”
Capital gains on investments held for at least a year are currently taxed at 15 percent for upper income earners, the same rate as eligible dividends. Without action by Congress the tax rates would revert to 20 percent for capital gains in 2011 and nearly 40 percent for dividends.
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